Its Time For Advisors To Address LTCs Place In A Financial Plan
It is estimated that today there are more than 45 million Americans aged 55 to 75. These individuals are living the nightmare of having to deal with long term care issues.
Dont they deserve professional advice to address how LTC will affect their family and finances? Dont they deserve to know the caregiving alternatives and the associated costs? Dont they need to understand the financing options for providing LTC?
So why have so many financial services professionals been reluctant to discuss LTC issues during the planning process? Because financial services professionals:
–Will not discuss LTC or any other issues unless they understand the impact it could have on the family and finances.
–Will not recommend LTC insurance as a possible solution unless they fully understand the product and its competition.
–Will not utilize LTC insurance as a planning tool unless they fully understand how to integrate it properly into an existing financial plan to maximize benefits and protection.
Lets address each of these issues:
The impact of LTC on family and finances.
When an individual is in need of caregiving, the other family members are affected. Why? Because families take care of families.
The impact on family members depends on what alternatives the family has in providing the care. In most cases, this care begins at home and unfortunately has a debilitating effect on those providing the care. It makes sense to discuss these issues before a family member may need care.
How important is it for a financial plan to include the effects of inflation? Most professionals would agree it is crucial to the solvency and legitimacy of any financial plan.
What is the real threat? Invading principal. Most retirees want to maintain their lifestyle, but under no circumstances do they want to invade their principal.
Yet I submit to you that omitting the LTC factor in such a plan can be much more threatening to the success of the plan than omitting the effects of inflation.